Welcome to Pure FX's latest update of the pound to Canadian dollar interbank exchange rate!
Sterling strengthens versus the loonie! The pound to Canadian dollar interbank exchange rate has hit 1.7629 today, its highest in over 8 months, or since June 26th 2018.
By contrast, back on January 9th, sterling was at just 1.8676 versus the Canadian dollar, so it's since risen by +3.5 cents, or +4.46%.
To put this into context for you, at today's interbank exchange rate, £250,000 would be worth CA$440,725, or +CA$18,825 more than on January 9th!
So this may benefit you to transfer money to Canada, if you're a Brit thinking of emigrating to Alberta or Montreal in 2019.
Pound to Canadian Dollar Rate Climbs, as Canada's Economy Contracts
The pound to Canadian dollar interbank exchange rate has touched this 8-month high, first because Canada's economy shrank in December, it was revealed last Friday.
To be specific, Canada's GDP contracted by -0.1% at the end of 2018, below financial market forecasts for 0.0%.
This is because business investment in Canada fell in December, as did exports. In particular, the value of Canada's crude oil exports, Canada's biggest commodity, fell by -34.3%.
This suggests that Canada's economy may get off to a slow start to 2019, thereby lifting the pound versus Canadian dollar!
Sterling Climbs Versus Loonie, as Canada's Inflation Eases
What's more, the pound has also strengthened versus the Canadian dollar, as Canada's inflation slowed in January, according to official statistics last week.
Canada's inflation eased by -0.1% to 1.4% in January, said Statistics Canada last Wednesday. This is below December's +1.5%, and the lowest figure since October 2017, or in 15 months.
This is because the price of petrol has fallen further in Canada. This will benefit Canadian consumers, yet lifts the odds that the Bank of Canada will keep interest rates at 1.75%.
This makes investing in Canada less profitable, hurting the loonie dollar!
GBP to CAD Rate Rises, as UK Consumer Credit Jumps
Moreover, sterling has also reached this 8-month high versus the loonie dollar, because UK consumer credit rose further than forecast in January, said official data last Friday.
According to the UK's Office for National Statistics (ONS), UK consumer credit expanded by +£1.095 billion in January. This is above both economists' forecasts for +£0.8 billion, and December's £0.683 billion.
This is the 1st figure above £1 billion in 5 months. This suggests that UK households remain happy to borrow, even with the looming Brexit deadline later this month.
As a result, GBP has flown up versus the CAD!
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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email firstname.lastname@example.org.